PHP7.8B Profit. 95% Mall Occupancy. Diversification at Work – Alliance Global Group Scales Under Andrew Tan
Alliance Global Group (AGI) reported first-quarter net income of PHP7.8bn, up 6% year-on-year on a normalized basis, as stronger recurring income from property leasing, hospitality, and spirits operations helped offset weaker VIP gaming activity and muted topline growth. Consolidated revenue increased 1% to PHP42.2bn.
The comparison excludes one-off gains recorded in the prior year and reflects the March 2025 deconsolidation of McDonald’s Philippines operator Golden Arches Development Corp, making normalized performance the clearest indicator of underlying earnings momentum. Net income attributable to shareholders rose 5% to PHP5.2bn.
Profit growth outpaced revenue expansion, reflecting operating leverage and tighter cost discipline while underscoring margin resilience despite softer consumer and gaming conditions. The quarter also highlighted AGI’s increasingly diversified earnings mix, with recurring leasing, hospitality, and consumer businesses helping cushion weaker performance in gaming-related activity.
Megaworld strengthens recurring earnings base
Megaworld Corporation remained AGI’s largest earnings contributor, lifting attributable net income 4% to PHP5.3bn as leasing and hospitality assets continued to expand their contribution. Revenue increased 3% to PHP21.6bn.
Mall revenue rose 9% to PHP1.8bn as occupancy reached 95%, while office rental income increased 4% on stronger lease renewals. Hotel revenue climbed 8% to PHP1.5bn, supported by portfolio expansion and sustained meetings and events demand. Property sales generated PHP13.3bn, improving sequentially as construction activity accelerated across Metro Manila developments. EBITDA increased 9% to PHP9.6bn, reflecting the growing contribution of higher-margin recurring assets.
The performance reinforces a longer-term shift in AGI’s earnings profile, with leasing and hospitality income reducing dependence on more cyclical residential property recognition and helping stabilize group profitability during weaker economic periods.
Emperador improves margins despite uneven spirits demand
Emperador Inc. reported attributable net income of PHP1.9bn, up 4%, while revenue reached PHP13.4bn as brandy and whisky sales increased 6%. Gross margin improved by three percentage points, supported by product mix improvements and cost discipline.
The quarter suggests profitability gains are being driven more by operating efficiency and premium mix than a broad-based recovery in spirits demand, with international whisky markets continuing to face uneven trading conditions.
Newport World Resorts leans on mass-market resilience
Newport World Resorts, operated through Travellers International Hotel Group, generated PHP7bn in net revenue and PHP8.6bn in gross revenue during the quarter. Gross gaming revenue reached PHP6.6bn, with weaker VIP play partly offset by a more resilient mass-market segment. Non-gaming revenue rose 10% to PHP2bn, supported by stronger hotel pricing and retail spending. EBITDA reached PHP1.7bn.
For AGI, Newport’s performance reinforces the strategic importance of mass-market gaming and non-gaming revenue, helping reduce earnings volatility associated with softer VIP activity while improving revenue visibility. The results also reflect a broader shift among integrated resort operators toward more stable, diversified revenue streams rather than reliance on historically volatile VIP gaming.AGI’s first-quarter performance suggests the group’s diversified portfolio is increasingly acting as an earnings stabilizer, with recurring property income, hospitality, and consumer businesses offsetting cyclical weakness in gaming and supporting steadier profit growth despite modest revenue expansion.
Source: Alliance Global Group
